Be Forewarned About Alibaba

Alibaba Group Holding Ltd. (BABA - Get Report) fell to a 52-week low of $146.73 early Tuesday, Oct. 9, as the stock has cooled off considerably from where it traded last year. At last check Alibaba's midday trading landed the share price at $148.24.

It's quite a turn of events for a stock that hit an all-time high in 2018 when it reached $211.70 a few months ago. Alibaba is now down 30% from its all-time high. The stock is down 19% year-to-date from the $183.65 it was at to start the year.

Sonenshine reported that Alibaba could be getting a headwind from the U.S.-China relationship, which is not currently in the best of conditions.

These 3 Stocks are so Beat Up, They're Worth Buying

However, TheStreet's Bret Kenwell takes a dive into the stocks and explains why he believes that iQiyi, JD.com and Alibaba are worthwhile buys for investors.

iQiyi

Known as "the Netflix (NFLX - Get Report) of China," iQiyi (IQ) went public at $18 per share in March. The stock actually dropped following the IPO, falling to $16 and it took a little time before this one found its mojo. Once it did, though, shares more than doubled in less than a month before topping out in June.

Since then, IQ has been under fire. However, over the last few trading sessions -- while the Nasdaq, S&P 500 and many of its peers were sinking -- IQ was holding pretty steady.

JD.com

JD.com (JD - Get Report) has been pulverized, falling more than 50% over the past few months. That's despite having a relatively low valuation and still strong growth.

Current expectations call for almost 30% revenue growth this year and 25% growth in 2019. While forecasts do call for a 22% decline in earnings this year, they are expected to more than double in 2019. Plus, how much of that is already priced in with the more than 50% decline in the stock price?

Alibaba

The prior support area of $165 to $170 has clearly turned into resistance for Alibaba ( BABA - Get Report) , the king of e-commerce in China. It doesn't help that founder and CEO Jack Ma is stepping down from his role amid a tough time for the stock.

While Alibaba stock hasn't seen the $145 to $150 area in more than a year, doesn't mean it won't act as support. At least on its first initial test.

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